In an annuity, after annuitization, who takes ownership of the funds in the account?

In an annuity, after annuitization, who takes ownership of the funds in the account?

• A. The beneficiary.
• B. The insured.
• C. The insurer takes ownership of funds in the account.
• D. The policy owner maintains ownership and control.

Answer: (C)

Ownership and control stay with the policy owner. When an annuity is annuitized, the accumulated value is converted into a guaranteed stream of payments, but the rights to the contract and to make changes (such as designating beneficiaries or choosing payout options) remain with the contract owner. The insurer simply funds and administers the payments under the contract, not owning the funds themselves. The other options would imply transferring ownership to someone else, which isn’t how annuities work—the insurer pays out, while the owner retains ownership of the contract.

Ownership and control stay with the policy owner. When an annuity is annuitized, the accumulated value is converted into a guaranteed stream of payments, but the rights to the contract and to make changes (such as designating beneficiaries or choosing payout options) remain with the contract owner. The insurer simply funds and administers the payments under the contract, not owning the funds themselves. The other options would imply transferring ownership to someone else, which isn’t how annuities work—the insurer pays out, while the owner retains ownership of the contract.